Replace in the Directory above with your installed SuSE Version. Supported at this time are :

10.1
10.2
10.3
11.0

Confirm the addition.

The repository is signed with a GPG Key (gpg key C8DA93D2 fingerprint BC8D 780D E330 8581 B2E0 7085 33DE 8FB7 C8DA 93D2). Accept this key in YaST and it will warn you in case there is something suspect with the repository.
Accept everything by clicking Finish.

Installation

Go to Software Management and enter VLC in the searchbox and search for it. Select it and click Accept to install it with all it's dependencies. This might require the SUSE CD or DVD.

If you want VLC's Mozilla Plugin, you have to select the vlc-mozillaplugin manually. It does not get installed by dependencies.